Introduction
Nvidia has reclaimed the crown as the world’s most valuable company, pushing past Microsoft with a market capitalization of $3.45 trillion. This historic achievement comes on the back of a 24% stock rally over the last month, driven by strong earnings, AI chip demand, and strategic global deals.
The last time Nvidia held the top spot was in January 2024, but its renewed dominance signals a new era in AI computing — one powered not by software, but by semiconductors.
/techovedas.com/4-ai-surprises-from-nvidia-that-have-pat-gelsinger-cheering-loudest
In Brief: Nvidia’s Massive Leap in 5 Points
- Market cap surged to $3.45 trillion, edging out Microsoft ($3.44 trillion).
- Stock rose 24% in a month, adding $1 trillion to Nvidia’s value.
- Q1 2025 revenue jumped 69% YoY to $44.06 billion.
- Strong demand for Blackwell AI chips fuels investor confidence.
- Nvidia signs Middle East AI chip deals to reduce China exposure.
How Nvidia Took the Lead
Nvidia’s stock closed strong on June 3, lifting the company to the top of the global market capitalization leaderboard. Microsoft, which had been leading the tech pack throughout 2024 and early 2025, now Nvidia becomes most Valuable company at $3.44 trillion.
Nvidia’s consistent climb reflects the market’s growing appetite for AI infrastructure. The company’s chips now power everything from ChatGPT to Google Cloud’s AI tools.
Nvidia Q1 2025 Results: Numbers That Matter
Nvidia’s earnings for Q1 FY25 were nothing short of stunning:
| Metric | Q1 FY25 | YoY Growth |
|---|---|---|
| Revenue | $44.06 billion | +69% |
| Earnings Per Share (EPS) | $0.96 | +78% |
| Market Cap Growth | $1 trillion (2 mo) | — |
The growth was driven by massive orders from tech giants like Meta, Amazon, and OpenAI, all ramping up their data centers with Nvidia’s latest Blackwell GPUs.
techovedas.com/the-h20-backfire-why-nvidia-is-destroying-4-5-billion-in-china-bound-ai-chips
Valuation Still Attractive Despite Big Gains
Even with this run-up, Nvidia’s valuation hasn’t reached speculative territory. Its forward price-to-earnings (P/E) ratio sits at 29x, which is below its 10-year average of 34x.
Compare that to the Nasdaq 100 average of 26x, and Nvidia still looks like a fair deal — especially when you factor in that the index’s earnings growth lags Nvidia’s by a wide margin.
The company’s PEG ratio (Price/Earnings to Growth) is also under 0.9, the lowest among the “Magnificent Seven” (Apple, Microsoft, Amazon, Meta, Tesla, Alphabet, Nvidia). This signals a rare blend of high growth at a reasonable price.
techovedas.com/blackwell-goes-east-nvidia-builds-china-specific-ai-chips-post-h20-ban
AI Chips: Nvidia’s Golden Ticket
AI is the clear growth driver. Demand for Nvidia’s chips has gone into overdrive as enterprises and governments scramble to secure computing capacity.
Nvidia’s new Blackwell series, which replaces the older Hopper architecture, offers faster training speeds and lower power usage — critical for generative AI workloads.
Tech leaders aren’t the only buyers. Middle Eastern nations, including Saudi Arabia and the UAE, signed multi-billion-dollar deals for AI chips during former President Trump’s recent visit. This move helps Nvidia diversify away from China, which made up 13% of revenue last quarter but faces growing U.S. export curbs.
Challenges Ahead
While Nvidia’s outlook is strong, it’s not without risk. The U.S.–China trade war, especially around chip exports, continues to cast uncertainty.
In October 2024, the Biden administration extended bans on high-end chip exports to China, including Nvidia’s A100, H100, and Blackwell chips. Though Nvidia created custom chips for China like the H20, even those may face restrictions under a potential second Trump term.
Still, by shifting its focus toward the Middle East, India, and Southeast Asia, Nvidia is proactively insulating itself.
Follow us on Linkedin for everything around Semiconductors & AI
Conclusion: Nvidia Is the Face of the AI Economy
Nvidia rise to the valuable company isn’t just about stock price. It reflects a broader economic shift where AI, not just software, is the key to future growth. As tech ecosystems race to build AI infrastructure, Nvidia has become the foundation.
Investors betting on the next industrial revolution — the AI revolution — are clearly placing their chips on Nvidia.
For more of such news and views choose Techovedas! Your semiconductor Guide and Mate!
